These days, the negative move continues. The stock fell below the $1 level though on Friday the company’s Board of directors was reinforced with a “leading Calgary oil-industry executive”, namely Mr. John Zahary.
This is a very experienced man with a number of senior management positions in his autobiography. He is also a member of Alberta Energy Minister’s Oil and Gas Economics Advisory Council. He once served as a chairman of the Petroleum Technology Research Centre and a governor of the Canadian Association of Petroleum Producers.
Company’s managers are surely delighted to have such a professional among them. Unfortunately, investors were not that much impressed and delighted with the news. In the last session, WEE fell 4% down to close at $0.94 on a humble turnover of 107K shares.
Since New Year the stock has depreciated by about 25%. Currently, it looks like the shares are aiming towards their 52-week low of $0.88. Will the decay stop soon?
Not easy to say. The latest financial reports, however, reveal several favourable trends that suggest Wavefront is perhaps doing its best to be on the right track:
- Revenue for the quarter ended Nov. 30, 2010 was $925K, 61% larger than for the corresponding quarter in 2009;
- In the end of last November, the company looked financially solid with over $28M of working capital.
Wavefront Technologies offers solutions for increasing oil field production and enhancing the treatment of contaminated groundwater. It is among the providers of secondary oil recovery.
The company uses its patented technology that sends pulses through the ground to simulate the effects of the aftershock of an earthquake. This aids in the process of recovering stranded oil.
When a pulse is applied to the ground, it expands and contracts the porous rock thus freeing the trapped oil. In the energy sector, this Power Pulse Technology has been patented by Wavefront as “Powerwave”; in the environmental sector, it has been marketed as “Primawave”.
